This week, VMWare has been rising steadily following news that they might be acquired fully by parent company EMC which already owns roughly 80% of VMW. VMWare's stock had sharply risen following the news reaching prices in the $92 range. However, following reports that the opposite might actually occur, VMWare's stock fell 5% during the day. It is rumored that VMWare might actually acquire EMC which would be a downstream acquisition, and in doing so would issue new shares in exchange for EMC's shares. EMC's stock slightly rose in response to the news in contrast to VMW's stock.
The move comes after VMWare reported earnings where they beat estimates by $0.02 which was followed by positive investor sentiment. It is clear that investors are not excited with the pursuit of an EMC acquisition and the situation will be followed accordingly.